I was layed off from my job. 2 months before the closing date.

Asked by jane doe, Paulsboro, NJ Tue Jun 2, 2009

I have submitted the necessary paperwork sitting down and signing papers with the lender..i.e paystubs, letter of employment from employer, bank stubs, tax returns... which put me in a great light to obtain this loan. The good faith deposit has been made. Appraisal has been ordered, CO and title search. I haven't told my realtor and especially the lender. I have applied for unemployment which actually pays for one year and combined with child support I am still able to pay this mortgage, since it is lower that my rent. Also I will be filing for the 8,000 credit right away. I am looking for a job and feel confident that I can do this. It is just a matter of geography for me since either way I have to survive, renting or owning.
Should I just go about this like nothing has changed? My income will be about 400 less a month being on unemployment.

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13
Kimberly Tho…, Agent, Voorhees, NJ
Tue Jun 2, 2009
BEST ANSWER
Dear Jane Doe,
I know this feels unfair and is a tough blow to you, but as the others have said, you will not be able to hide your unemployment from your bank. They will re-verify employment before closing.

Also just a bit of advice, you should want to back out of this transaction. With $400 less per month coming in, you do not want to take on the responsibility of home ownership. Home ownership costs more than just the monthly rent. There's utilities, maintenance and improvements that you'll want and need but won't be able to do. It'll be very frustrating and possibly overwhelming.

Come clean now so that you can move on with your life and the seller can get their property re-listed. You may be able to save yourself the fees associated with the appraisal, title search, etc. if you get out now. You will be able to buy again when the time is right. Keep looking for employment -if you get a new job quickly, making the same or more money, you may still be able to buy this year and qualify for that tax credit. Best Wishes to you and your family.
Kim

Kim Thomas
http://www.KimThomasHomes.com
email: kim@kimcanhelp.com
856-308-5989
0 votes
Kimberly Tho…, Agent, Voorhees, NJ
Fri Sep 18, 2009
Jane Doe,
That was a great pep talk that you gave to the other buyer in your previous predicament. Way to go! Congratulations on making settlement and moving in! Enjoy being a homeowner.
0 votes
jane doe, , Paulsboro, NJ
Fri Sep 18, 2009
Don't give up thats all I can say. To dwell on the negative (loss of job) is not going to help the cause. You get over feeling sorry for yourself, blaming your previous employer and situation. Start working on solutions to your dilemma. Your goal is not out of reach. I know my positive attitude had alot to do with this and my "OK. now whats my next step" and move forward attitude did as well. Keep looking for a job.

I did finally make settlement on September 11th and I am in the process of moving my belongings into my new home. This one, by the way, is 10X better than the other one.

You can do this!! Remember....everything happens for a reason. I truly believe that.

Now get working on that job.

Good Luck!
Jand Doe
0 votes
Blurgirlny, Home Buyer, Morris County, NJ
Fri Sep 18, 2009
I just wanted to say this just happened to me. I'm so beyond depressed, it's not even funny. We spent over two years searching for the perfect home in NJ. Today was our appointment for inspection. We were going to close in two months. I was laid off on Tuesday. Totally didn't see it coming. Never would have gone this far if I knew. We've pretty much lost everything now and we're stuck in our apartment until further notice. Glad your situation worked out OK. Praying ours does too :-(
0 votes
Kimberly Tho…, Agent, Voorhees, NJ
Thu Aug 20, 2009
Hey!!! Thanks for updating us! I wondered what happened to you! This is great news! Definately best to be employed. Staying in the same field making the same money has paid off for you so you were able to keep your loan as if nothing had happened. Please share your story with everyone you can. Your perseverence is a testimony that should be shared with others who may be thinking "all is lost". You can show them with determination (and God) on your side, all things are possible.
Web Reference:  http://www.KimCanHelp.com
0 votes
jane doe, , Paulsboro, NJ
Thu Aug 20, 2009
Thank you everyone for your input.
I worked my a** off to find employment. Sure it would have been great to enjoy UE benefits for the summer but I really wanted the home. So I let the lender know. She informed me that the loan would be fine if I secured employment. So I spent day in and out (like it was a job) searching. It took me two weeks to find a job doing the exact thing, making the exact amount of money in the same exact industry.
Well, I am enjoying my new job now for about 2 months now. Unfortunately, a week before settlement of the home the title came back with a tax lien on the property that wouldn't be lifted till Dec 4th which made it impossible to claim the 8,000 tax credit. I weighed everything out and walked.
Now I have a different property I am under contract with.

It paid off to obtain employment. My dad says...."As long as your passing go....and collect $200" your good to go.
Hoping that this deal doesn't fizzel.
Thanks all!!
Jane Doe
0 votes
Catherine Wa…, Agent, Turnersville, NJ
Thu Aug 20, 2009
Dear Jane:

It is best to be honest and direct whatever the circumstances - job loss, loss of child support. Eventually, it will catch up with you and even worse, should you not find a job currently, then you may even ruin your credit and in the long rung it will take longer to get it straightened out and take longer to buy your new home. Your realtor and lender will guide you through the guidelines of timing, so, in the event you do get a job before the drop dead date, then you probably will be able to proceed. If not, then when you are in a better position, you can move forward again with another home.
0 votes
Jason Dipers…, , Haddonfield, NJ
Fri Jun 19, 2009
Jane,

I think it's clear that you need to tell the lender. Let me emphasize what Bob said below- not mentioning it can be construed as mortgage fraud. You don't want that headache. Find a new job and then buy a house, even if it takes an extra month or two.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com
0 votes
Bridget Cella…, , Turnersville, NJ
Fri Jun 19, 2009
Talk to your agent and loan officer right away! If they say your ok then you are!

Good luck!
0 votes
Steve Kappre, , Gloucester County, NJ
Sat Jun 13, 2009
Jane - I'm curious how this panned out - hopefully well for you. I grew up in Paulsboro :)
Web Reference:  http://www.stevekappre.com
0 votes
Bev & Bob Me…, Agent, Livingston, NJ
Tue Jun 2, 2009
You can't hide this from the bank or your attorney, etc. It's been already stated, the bank re-verifies the key points right before closing. Any major changes in your ability to qualify will stop the loan from going through. Talk to your attorney ASAP for guidance and advice. Don't go any further with just a wing and a prayer. It's not beneficial to you or to the seller or anyone else involved.

You can make it through this, but do so with a clear plan of action.
0 votes
Corey Grushin, Agent, East Brunswick, NJ
Tue Jun 2, 2009
Jane Doe, you can't qualify for a mortgage using unemployment benefits because for loan purposes the bank needs to show a continuance of receiviung such for for the next 3 years after closing. Your application states that you are working and it's required for underwriting to verify your employment. Usually employment verifcations are done 5 days prior to closing (look at your commitment) and if it's found out then that you are unemployed the loan will not go through. You may then have paid for an apraisal that you can't use till you have a new job. The title search your attorney did will still need to be paid which can be your responsibility.
If the chances of you finding a new job before you close are good then you may want to continue on with your silence, but if not you should speak with your lender and the realtor to discuss your options
0 votes
Bob Wuest, , Cincinnati, OH
Tue Jun 2, 2009
Jane,

You may or may not have an option. You should disclose to your lender - otherwise it could be construed as loan fraud. Your lender may withdraw the loan commitment if you're now unemployed.

If the lender does not withdraw the loan commitment, then it's your choice whether to move forward or back off.

Best of luck!
Web Reference:  http://www.BobWuest.com
0 votes
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